Inderscience Publishers

The potential impacts of border tax adjustments on imports of energy-intensive goods in the EU and USA markets

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Government action to address climate change has been very varied and industries in the developed world, especially those that which are energy intensive, are increasingly concerned about the potential negative impacts of abatement measures on their international competitiveness. This paper looks at the potential impacts of one measure which has been proposed to address these competitiveness concerns – border tax adjustments (BTAs). It finds that the potential impacts of such measures may not justify the complexity of their imposition. The impacts on competitiveness are likely to be limited and potential negative side effects on some poor developing countries cannot be ruled out. The country most likely to be impacted by BTAs in the EU and USA markets is China, while the low-income countries most likely to be affected are Niger, Mozambique and Tadjikistan, in the EU market and Liberia, Tadjikistan, and Uzbekistan in the USA market.

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